ACCT 101B EXAM II REVIEW (WARREN 14TH)|ANSWERS ON THE BOTTOM PPAGES | VERIFIED SOLUTION

ACCT 101B EXAM II REVIEW (WARREN 14TH)Indicate the answer choice that best completes the statement or answers the question. 1. Pinacle Corp. budgeted $700,000 of overhead cost for the current year. Actual overhead costs for the year were $650,000. Pinacle's plantwide allocation base, machine hours, was budgeted at 100,000 hours. Actual machine hours were 80,000. A total of 100,000 units was budgeted to be produced and 98,000 units were actually produced. Pinacle's plantwide factory overhead rate for the current year is: a. $8.13 per machine hour b. $7.00 per machine hour c. $6.50 per machine hour d. $8.75 per machine hour Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours. Direct Labor Product Overhead Hours (dlh) A B Painting Dept. $248,000 10,000 dlh 16 dlh 4 dlh Finishing Dept. 72,000 10,000 4 16 Totals $320,000 20,000 dlh 20 dlh 20 dlh 2. Determine the overhead in the Painting Department for each unit of Product B if Blue Ridge Marketing Inc. uses a multiple department rate system. a. $49.60 per unit b. $99.20 per unit c. $28.80 per unit d. $64.00 per unit The Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below. Product Number of units Labor hrs per unit Machine hours per unit Blinks 1,000 4 5 Dinks 2,000 2 8 All of the machine hours take place in the Fabrication department, which has an estimated overhead of $84,000. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $72,000. 3. The Ramapo Company uses a single overhead rate to apply all overhead costs based on labor hours. What is the overhead cost per unit for Blinks? a. $78.00 b. $19.50 c. $37.45 d. $56.00 4. Common allocation bases are a. direct labor dollars, direct labor hours, direct material dollars b. direct labor dollars, direct labor hours, machine hours c. direct labor dollars, direct labor hours, machine dollars d. machine dollars, direct labor dollars, direct labor hours 5. The Botosan Factory has determined that its budgeted factory overhead budget for the year is $13,500,000 and budgeted direct labor hours are 10,000,000. If the actual direct labor hours for the period are 350,000, how much overhead would be allocated to the period? a. $675,000 b. $470,630 c. $472,500 d. $236,250 Blackwelder Factory produces two similar products - small lamps and desk lamps. The total plant overhead budget is $640,000 with 400,000 estimated direct labor hours. It is further estimated that small lamp production will require 275,000 direct labor hours and desk lamp production will need 125,000 direct labor hours. 6. Using the single plantwide factory overhead rate with an allocation base of direct labor hours, how much factory overhead will Blackwelder Factory allocate to desk lamp production if actual direct hours for the period is 118,000? a. $118,000 b. $200,000 c. $188,800 d. $125,000 Adirondak Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. Total Direct DLH per Product Overhead Labor Hours A B Painting Dept. $250,000 10,000 16 4 Finishing Dept. 75,000 12,000 4 16 Totals $325,000 22,000 20 20 7. Calculate the overhead rate per unit for Product A in the painting department of Adirondack Marketing Inc. a. $236.32 per unit b. $325.00 per unit c. $147.70 per unit